E TRADE Financial Corp (ETFC)

[GordonGecko]

E*Trade ex-CEO cashes in
E*Trade (ETFC) finally rid itself of its former chief, but his departure didn’t come cheap. Mitchell Caplan, who stepped down as CEO in November as the struggling online broker lined up a huge capital infusion from Citadel, resigned Wednesday from E*Trade’s board. E*Trade and Citadel booted Caplan after investors fled the stock amid worries about E*Trade’s liquidity - fears brought on largely by Caplan’s ill-considered foray into risky mortgage securities. E*Trade is still looking for a full-time replacement for Caplan and says it hopes to make a decision in the next month or two.

In the meantime, Caplan will be busy counting his money. He will get $10.9 million in cash, plus medical, life and disability insurance coverage, and reimbursement of certain legal fees. All this for a guy who steered the stock to an 84 percent decline last year - the third-biggest decline among Fortune 1000 companies that retain their stock exchange listings. “Mr. Caplan’s resignation from the board,” E*Trade’s press release says, “effectively severs all ties with the company.” Not a moment too soon, obviously.

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